Slide 1: Investor Presentation
For personal use only Investor Presentation Monday, 23rd March 2009 © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009
Slide 2: About A.P. Eagers
About A.P. Eagers For personal use only • 96 year old automotive retail group founded in 1913 • 52 years as a listed public company – dividend paid every year • A.P. Eagers owns more than 69 acres of prime real estate mainly in metropolitan Brisbane • Dec 2008 Balance sheet value of land and buildin
Slide 3: About A.P. Eagers
About A.P. Eagers For personal use only Represents 10 of the top 10 selling vehicle brands in Australia © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009
Slide 4: About A.P. Eagers
About A.P. Eagers For personal use only As well as 18 others, representing 28 vehicle brands in total © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009
Slide 5: Group Financial Results: Underlying Trading Performance
Group Financial Results Underlying Trading Performance For personal use only • Revenue up by 1%. Underlying Trading Performance • Difficult market conditions, 2008 $m Change high interest rates and fuel Revenue 1,690 +1% prices followed by global EBITDA 61.1 -7% credit crisis. EBIT 52.9 -12% • Highe
Slide 6: Financial Trends
Financial Trends For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009
Slide 7: Group Financial Results: Non-Trading Significant Items
Group Financial Results Non - Trading Significant Items For personal use only $000 Before tax After tax GST on holdback tax refund 11,469 10,416 Impairment of Adtrans (9,550) (6,685) investment based on share price $2.45 and 10% control premium. Impairment of intangible assets (6,759) (6,759) - good
Slide 8: Financial Trends
Financial Trends For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009
Slide 9: Group Balance Sheet - Summary
Group Balance Sheet - Summary For personal use only • Reductions in inventories (44 2008 Change Change $m ($m) vs 50 days) and receivables (12 vs 15 days). Working 49.8 (10.0) -20% • Impairment of Adtrans Capital investment ($9.6 m), Investments 17.6 (5.1) -29% Goodwill ($6.8m). PP&E 358.7 28.7 +8%
Slide 10: Borrowings
Borrowings For personal use only • $111 million FY 2008 IH 2008 FY 2007 reduction in debt $m $m $m over 6 mths. Current -Bailment & 168.5 250.0 188.2 • Operating cash is O’draft being used to N/Current (Bank Debt) 145.9 173.7 133.8 reduce bank debt. Total Borrowing 314.3 423.7 322.0 • End Feb 09 ban
Slide 11: Group Cash Flow - Summary
Group Cash Flow - Summary For personal use only 2008 • Cash from operations $m includes $11.5m GST tax Cash from operations 48.5 refund. Purchase of PP&E (32.7) • Reduction in receivables Investment in Adtrans (2.7) and used car inventories. Business acquisitions (9.8) • Additional 2.5% Adtrans Net
Slide 12: Franchise Automotive Retail Segment
Franchise Automotive Retail Segment For personal use only 2008 2007 • Poor industry conditions $m $m for new and used car Revenue 1688.8 1,674.5 sales, and higher average interest costs reduced Profit before tax 20.1 33.7 margins/returns. Total Assets 397.6 406.0 • Increased assets from Buckle acqui
Slide 13: Australian new car sales
Australian new car sales (month of December and full year 2008) For personal use only Month YTD Variance +/- Vol. & % Total Market 2008 2007 2008 2007 MTH YTD MTH YTD AUSTRALIAN CAPITAL TERRITORY 1,279 1,355 15,510 16,667 -76 -1,157 -5.6% -6.9% NEW SOUTH WALES 22,421 25,290 304,921 320,055 -2,869 -1
Slide 14: Automotive Franchised Retailing
Automotive Franchised Retailing For personal use only New Cars 34,016 units +5% Used Cars 16,472 units +4% Parts Revenue +5% Margin + 35% Service Revenue +23% Margin + 22% © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009
Slide 15: For personal use only
For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009
Slide 16: For personal use only
For personal use only © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009
Slide 17: National vehicle fleet is approaching million (car parc)
National vehicle fleet is approaching 15 million (car parc) For personal use only All vehicle registrations 15 mn other vehicles passenger & SUVs 10 5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: ABS, ANZ Bank © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2
Slide 18: Property Segment
Property Segment For personal use only 2008 2007 • Lower returns due to $m $m Buckle property acquisition Rental Income 27.5 24.1 in April 2008–9 mths Profit before tax 8.7 8.5 income only, and higher Revaluation surplus 0 19.6 rates, taxes and interest (a/tax) cost. Total Assets 340.5 313.8 • Prope
Slide 19: Industry-wide reasons why we believe 2009 will be better
Generic Industry-wide reasons why we believe 2009 will be better (Sept 08 Slide) For personal use only • Anticipated further lower interest rates results in lower costs (bailment and corporate debt). • Anticipated further lower interest rates results in greater private new and used car customers. •
Slide 20: A.P. Eagers in 2009
A.P. Eagers in 2009 For personal use only • Stable performance due to generic industry wide macro environment. • Consolidation of some business units, resulting in a lower cost base whilst maintaining income. • Further debt reduction through disposal of underutilised assets. • Organic growth strateg
Slide 21: Briefing
For personal use only Briefing © 2007 AP Eagers Limited. All Rights Reserved. Monday, 23 March 2009